E-Z-GO 2003 Annual Report Download - page 69

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67
Company-funded and customer-funded research and development costs are as follows:
(In millions) 2002 2001
Company-funded $ 255 $ 204 $ 361
Customer-funded 332 379 323
Total research and development $ 587 $ 583 $ 684
Textron has five reportable segments: Bell, Cessna, Fastening Systems, Industrial and Finance. See
Note 1 regarding Textron’s reorganization of its segments in 2003 and Textron’s principal markets, and
pages 12 and 13 for products of the segments.
Textron’s reportable segments are strategically aligned based on the manner in which Textron manages
its various operations. The accounting policies of the segments are the same as those described in the
summary of significant accounting policies in Note 1. Textron evaluates segment performance based on
segment profit. Segment profit for Textron Manufacturing excludes interest expense, certain corporate
expenses, special charges, and gains and losses from the disposition of significant business units. Tex-
tron Finance includes interest income, interest expense and distributions on preferred securities of
Finance subsidiary trust, and excludes special charges as part of segment profit. To reflect the adoption
of SFAS No. 142 and the fact that Textron does not include amortization of goodwill in its internal evalua-
tion of segment performance, Textron has recast its segment data for comparability by reclassifying
goodwill amortization out of segment profit in prior periods. Provisions for losses on finance receivables
involving the sale or lease of Textron products are recorded by the selling manufacturing division.
The following summarizes revenues by type of products:
(In millions) 2002 2001
Bell:
Rotor Aircraft $ 1,755 $ 1,636 $ 1,621
Other 593 599 622
Cessna: Fixed-Wing Aircraft 2,299 3,175 3,043
Fastening Systems 1,737 1,650 1,679
Industrial:
Fuel Systems and Functional Components 1,454 1,226 1,074
Golf and Turfcare Products 665 756 761
Fluid & Power 446 383 409
Automotive Trim — — 1,579
Other 338 341 507
Finance 572 584 681
$ 9,859 $ 10,350 $ 11,976
(In millions) 2002 2001 2002 2001
Bell $ 2,348 $ 2,235 $ 2,243 $ 234 $ 169 $ 93
Cessna 2,299 3,175 3,043 199 376 344
Fastening Systems 1,737 1,650 1,679 66 72 70
Industrial 2,903 2,706 4,330 141 163 280
Finance 572 584 681 122 118 203
$ 9,859 $10,350 $11,976 762 898 990
Special charges (159) (135) (143)
Segment operating income 603 763 847
Gain on sale of businesses 15 25 342
Goodwill amortization — — (91)
Corporate expenses and other, net (119) (114) (152)
Interest expense, net (98) (108) (162)
Income from continuing
operations before income taxes
and distributions on preferred
securities $ 401 $ 566 $ 784